[Appendix material: calculus required) Suppose total benefits and total costs are given by BMY)-220Y-15Y2 and CY) - 10Y. What level of Y will yield the maximum net benefits? Multiple Choice 10.9 4
[Appendix material: calculus required) Suppose total benefits and total costs are given by BMY)-220Y-15Y2 and CY) - 10Y. What level of Y will yield the maximum net benefits? Multiple Choice 10.9 4
Managerial Economics: A Problem Solving Approach
5th Edition
ISBN:9781337106665
Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Chapter7: Economies Of Scale And Scope
Section: Chapter Questions
Problem 7.5IP
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Transcribed Image Text:[Appendix material: calculus required) Suppose total benefits and total costs are given by B(Y)-220Y-15Y2 and C(Y) - 10Y. What level of Y
will yield the maximum net benefits?
Multiple Choice
10/9
5
![[Appendix material: calculus required] Total benefits in the table are
Control
variable
e
0
1
2
3
4
5
7
8
9
10
Total
Benefits Total Costs
B(Q)
900
1,700
2,400
A
3,500
3,900
4,200
4,400
4,500
4,500
C(Q)
0
100
300
600
1,000
1,500
2,100
2,800
B
4,500
5,500
Net
Benefits
N(Q)
0
800
C
1,800
2,000
2,000
1,800
1,400
800
0
-1,000
Marginal
Benefit
MB (Q)
900
800
700
600
500
D
300
200
100
0
to
Marginal
Cost
MC (Q)
100
200
E
400
500
600
700
800
900
1,000
Marginal Net
Benefit
MNB (Q)
F
800
600
400
200
200
-400
-600
-800
-1,000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fd9b85f7c-30cd-4d92-a4d3-965f6bfe62a6%2F8ab0bc08-a11f-4d44-86f1-22edfbdab660%2Fydtx9hk_processed.png&w=3840&q=75)
Transcribed Image Text:[Appendix material: calculus required] Total benefits in the table are
Control
variable
e
0
1
2
3
4
5
7
8
9
10
Total
Benefits Total Costs
B(Q)
900
1,700
2,400
A
3,500
3,900
4,200
4,400
4,500
4,500
C(Q)
0
100
300
600
1,000
1,500
2,100
2,800
B
4,500
5,500
Net
Benefits
N(Q)
0
800
C
1,800
2,000
2,000
1,800
1,400
800
0
-1,000
Marginal
Benefit
MB (Q)
900
800
700
600
500
D
300
200
100
0
to
Marginal
Cost
MC (Q)
100
200
E
400
500
600
700
800
900
1,000
Marginal Net
Benefit
MNB (Q)
F
800
600
400
200
200
-400
-600
-800
-1,000
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